Why More People Are Buying NFTs
If you spend enough time researching different investing opportunities, then you’ve probably heard something about NFTs. NFTs or non-fungible tokens exploded in popularity in 2021, although they were first introduced in 2017. Simply put, NFTs are digital assets that are unique and work differently to currencies like cryptocurrency or fiat currency. NFTs have a unique token ID that is stored on the blockchain and allows users to authenticate ownership of each asset.
What are NFTs?
NFTs come in many forms, including artwork and collectible items, which can be bought and sold on marketplaces like OKX. They allow creators and artists to make a bigger profit than ever before from their work. Many NFTs that make the news on a regular basis are worth hundreds of thousands of dollars, or even millions of dollars. But there are also just as many, if not more NFTs that aren’t worth a lot right now and you can get quite cheaply. So, why exactly are more and more people deciding to buy NFTs?
One of the main reasons behind the massive growth in popularity of NFTs is the blockchain technology that empowers them. Each NFT is a virtual token which is stored on the blockchain. Ethereum is the most commonly used NFT network, and most NFTs are Ethereum-based. The blockchain can be accessed by anybody and does not have a central authority to facilitate or govern transactions, creating a decentralized network.
Many of the world’s most popular NFTs like Bored Ape Yacht Club or CryptoPunks are released as entire collections. These contain anywhere from one thousand to ten thousand individual NFTs. Most collections will release around ten thousand artworks. However, the demand for limited assets will boost the price as the collection becomes more and more popular. As there are only going to be so many NFTs from a certain collection and so many investors are interested, the demand increases as the collection become more valuable.
Celebrities are Buying
NFTs aren’t just popular with crypto investors. There are now many celebrities including actors, singers, and professional athletes who are getting on board the NFT bandwagon. Lots of musicians including Post Malone, Justin Bieber, Eminem, and Snoop Dogg are into NFTs and have posted about their NFTs online. With more and more household names getting into the market and sharing their purchases with others, they continue to put NFTs into the mainstream.
Big Profit Potential
Many people who are buying NFTs are doing so in the hope that they will make a profit from selling them in the future. NFT trading is quite profitable to get into and is very popular. Back in the early days, CryptoPunks NFTs, for example, were practically given away for free, but today, anybody who got their hands on one back then could make hundreds of thousands of dollars in profit.
If you’ve heard about the hype around NFTs and are wondering why you should buy them, these are just some of the main reasons why more and more people are buying NFTs today.